MEMA delivers active emerging markets exposure through alternative strategies designed to capture returns differently than traditional long-only EM equity funds. The fund aims to generate alpha by exploiting inefficiencies in developing markets through systematic trading strategies.
How It Works
The fund employs quantitative models to identify pricing anomalies across emerging market equities, currencies, and derivatives. It can go both long and short, use leverage, and trade across multiple asset classes within EM countries. The strategy dynamically adjusts exposures based on market conditions, volatility regimes, and cross-asset correlations, with positions typically held for days to weeks rather than months.
Key Features
- Long/short capability allows profit from both rising and falling EM assets
- Multi-asset approach trades equities, FX, and derivatives across 20+ EM countries
- Zero expense ratio makes sophisticated EM strategies accessible to retail investors
Risks
- Alternative strategies can underperform badly in trending markets — expect 15-20% drawdowns
- Leverage and derivatives amplify losses; fund could lose 30%+ in severe EM selloffs
- Brand new fund with no track record launching into potentially volatile EM environment
Who Should Own This
Best suited for investors who already have traditional EM exposure and want a diversifying sleeve that can profit when conventional EM equity funds struggle. The zero fee structure makes it attractive for tactical traders willing to monitor closely, but the complexity and potential for sharp losses make it inappropriate as a core EM holding.